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Owning a house/condo in Cancun or other parts of Mexico

Owning a house/condo in Cancun or other parts of Mexico

Old Sep 1st, 2004, 08:56 AM
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Owning a house/condo in Cancun or other parts of Mexico

My husband and I just returned from Cancun and had a great relaxing time there as usual. We stopped by and looked at a model home they are selling and liked the location of the complex. This is the two building condo complex they are finishing located next to the Riu. They start at $450,000 up to $700,000 for a 3 bedroom, 3 bath, over 2000 sq. ft. unit with ocean and lagoon views. The maintenance fees are approx. $650/mo. We were just wondering what some of the experiences others may have with owning properties in Mexico. How is the resale value? Do you rent out your homes to vacationers? What are some of the pros and cons of owning property in Mexico?
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Old Sep 1st, 2004, 11:54 AM
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you do realize that since it is on the coast you can not ever really own it...you own a long term lease on it.
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Old Sep 7th, 2004, 12:21 PM
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650USD for maintenance, it's very high for Mexico, you can rent an apartment in downtown Cancun for 300USD per month.
If you're really interested in buying in Cancun, here is a site with a lot of information about real state, cost of living, etc..
www.cancunassist.com/
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Old Sep 9th, 2004, 09:28 PM
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I've found a GREAT site that offers free full color maps (in PDF format) of Puerto Vallarta and almost every other area in Mexico. Check it out!

http://www.allworldhotel.com/mexico/mexico_map.html
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Old Sep 10th, 2004, 07:34 AM
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As Curt said, you can't own outright any property within 50 miles of the coast, it is held in trust by the bank in your name - still very safe.
Your prices in Cancun seem very high compared to other popular places like Puerto Vallarta and Ajijic.
Check out www.virtualvallarta.com - they have a large real estate section.
IMHO, PV is a much nicer place to have a home than Cancun but that's just me.
Other advice would be to make sure you deal through a reputable, licenced real estate agent - they should be a member of AMPI, the Mexican real estate agent's association.
There are many projects in PV that do handle rentals for you so I imagine this service would be available almost any area.
Andrew
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Old Sep 10th, 2004, 12:13 PM
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Don't expect to make a great deal of profit by renting out your home when you are not using it. Most people doing that just about break even. I, for one decided against renting out my beach house. I heard too many horror stories about how short term tenants ruined other peoples's furniture and home. If you do rent expect the wear and tear on the house and furnishings to be very high and don't buy expensive furniture or decorate with anything you would be heartbroken about if it was lost, broken or stolen. If your condo is anywhere near the coast expect higher than usual maintenance costs as the salt air plays havoc with just about everything in the house. Since you are looking at a condo I suspect the $650/month maintenance fee is for the "common areas" and not individual upkeep for your unit. Best to check that out before you make any committments because if you have to pay extra whenever you repair or replace anything inside your unit that can add signficantly to your carrying costs. You may need someone to look after the house whenever you are not there, even if you don't rent it out. If so, the cost for that will most likely be over and above your monthly maintenance fees. I don't mean to put a damper on your enthusiam but my experience has been that the "true" upkeep on my beach house has been twice as much as we originally planned 9and we did a lot of homework before we started to build). Despite the extra costs my wife and I thoughly enjoy our "second" home and to us it is worth every penny. A word to the wise however, if you are on a tight budget don't do it.
 
Old Sep 20th, 2004, 11:43 AM
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I have owned a small 3BR 3BA 2000 ft2 house with two medium size landscaped patios (redone in July/Aug '03) in the historic Centro of San Miguel de Allende since early July '03. Property away from the coasts and frontiers is tranferred to foreign owners fee simple as in the US. Expect a 1.6 - 1.7% transfer fee/tax which the buyer typically pays.
When I'm not here, it leases for about $2500. a month in high season and it is leased for $1800. a month for 12 months beginning 1 October (renters will pay gas and electric and I'll pay my maid and water). I'll net about $1500. a month from that rental.
Utilities run less than $1200. (US) a year incl local phone and Sat TV, property taxes are $136.65 a year and my maid gets $350./$550.(MXP) a week for 3 or 5 1/2 days. Most have no Homeowner or property/umbrella insurance.
We have several free and several low cost wireless I/N accesss sites and there are 3 IP phone service providers.
Real estate in SMdA (especially the Centro) has been appreciating at more than 15% a year for some time. I have been here since 23 August and I am actively looking for a larger house in the Centro for a permanent residence when my house in Dallas is sold.
Decent to outstanding homes run $200K - $500K, but there are many in the $Million + range.
You will certainly need a MX will if you buy property and you'll eventually need an FM-2 visa to avoid MX cap gains taxes on any future sale of real estate.
The prices quoted seem steep - we looked at large world class houses in Rosarito/Ensenada (Baja) in that price range in May, but found nothing appealing. Cancun would not be on "my" investment list.
M
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